What's the Symbol for MFS Municipal Income Trust?

MFS Municipal Income Trust is a closed-end management investment company that invests primarily in a diversified portfolio ofmunicipal bonds. The company's investment objective is to provide high current income exempt from federal income tax, consistent with preservation of capital.

What is a closed-end management investment company?

Closed-end management investment companies are investment companies that have a fixed number of shares outstanding and are traded on an exchange. Unlike open-end mutual funds, closed-end funds do not issue or redeem shares on a continuous basis. Instead, investors buy and sell shares in the secondary market.

What are municipal bonds?

Municipal bonds are debt securities issued by state and local governments to finance public projects such as schools, roads, and hospitals. Municipal bonds are exempt from federal income tax and, in some cases, state and local taxes. This tax-exempt status makes municipal bonds attractive to investors in higher tax brackets.

How does MFS Municipal Income Trust invest?

MFS Municipal Income Trust invests primarily in municipal bonds with a focus on investment-grade securities. The portfolio is diversified by geographic location, maturity, and sector. The fund may also invest in other fixed-income securities, such as corporate bonds, and may use leverage to enhance returns.

What are the risks associated with investing in MFS Municipal Income Trust?

Like all investments, MFS Municipal Income Trust carries risks. The value of the fund's shares will fluctuate with changes in market conditions and interest rates. The fund's income may be affected by changes in the creditworthiness of the issuers of its investments. The fund's use of leverage may increase the volatility of its returns. Additionally, the tax-exempt status of the fund's income may be affected by changes in tax law.

What are the benefits of investing in MFS Municipal Income Trust?

MFS Municipal Income Trust provides investors with a source of tax-exempt income. The fund's focus on investment-grade securities may provide a measure of stability to the portfolio. Additionally, the fund's use of leverage may enhance returns in a low-interest-rate environment.

In conclusion, MFS Municipal Income Trust is a closed-end management investment company that invests primarily in a diversified portfolio of municipal bonds. The fund provides investors with a source of tax-exempt income and may use leverage to enhance returns. Like all investments, MFS Municipal Income Trust carries risks, but its focus on investment-grade securities may provide a measure of stability to the portfolio. As always, investors should carefully consider their investment objectives, risk tolerance, and financial situation before investing in any security.